Saving Money
Who doesn’t want to make this part of their New Year’s plan? Sometimes, saving money means cutting back on certain indulgences, but Shelley Giles, otherwise known as Phoenix’s Miss Thrifty, knows that smaller savings on everyday items can make a huge difference in your wallet. Giles, who runs the Web site ThriftyCouponDeals.com and answers readers’ questions on how to save their dough, provides these user-friendly tips:
• Make time to clip or print coupons and take them to the store with you. Keep an envelope of coupons in your purse or car of the things your family uses.
• Plan your meals for the week. In Arizona the grocery sales run from Wednesday through Tuesday. Use what is on sale for the week and what you were able to purchase last week on sale and put in the freezer.
• Avoid ordering sodas and tea and alcoholic beverages at restaurants. If you want to enjoy that cocktail at a lower price, go home after dinner, make your favorite beverage and go out on the back patio.
• If you don’t have an extra freezer, budget for one. There are not many coupons for meats, so you may want to buy that in bulk when the stores have really good sales.
In addition to reducing your spending on household items, being banking savvy can also save you a bundle. Keith Maio, C.E.O. of National Bank of Arizona says, “Don’t be afraid to ask for help. Arizona Saves is a local nonprofit that provides financial education, workshops, financial education and access to no-fee savings accounts to all Arizonans.” Here, he provides a few ways to start seeing more green in your bank account this year.
• Make savings automatic. Your banker can help you set up a separate account to automatically transfer money each month from your checking to your savings account.
• Cut credit card debt. If you are carrying a balance on a credit card, chances are the money in your savings account isn’t earning as much as the credit card is charging you in interest and fees to keep the balance.
• Refinance your mortgage. If you can reduce your current interest rate by more than 1 percent, it could be to your benefit to refinance. You could be able to reduce your monthly payment significantly.
Offering up a few more practical investment solutions is Scottsdale’s Harris Private Bank:
• Ensure that you have saved the equivalent of six months in living expenses. The excess should be saved or invested.
• Keep in mind the “Rule of 72” when making an investment. To determine the return on investment (ROI) needed to double your money, divide the expected or desired number of years into 72. For example, if you wanted to double your money in eight years, then you would need a 9 percent ROI (72/8) every year for eight years.
• Diversify and invest beyond banking, in areas such as stocks, bonds or real estate (everything is cyclical).
